PepsiCo plans to cut around 1,000 jobs in North America as part of a restructuring of its food and beverage business. The changes are expected to be carried out next week, Bloomberg Law reported. Reuters also reported on the company’s plans, citing information from The Wall Street Journal.
The job cuts are linked to a plan to simplify PepsiCo’s organizational structure in the region. Ram Krishnan, chief executive of the company’s North American division, sent a memo to employees saying that the workflow remains “complex and fragmented.”
“We have opportunities to simplify our structures, clarify responsibilities and make decisions faster,” Krishnan wrote. He added that changes would be made in various parts of the organization next week.
Pressure on North American Sales
PepsiCo is making the cuts at a time of difficulties for its business in its main market. Beverage sales in North America are under pressure, while the company is also struggling to maintain its market share in salty snacks after raising prices. Higher raw-material costs and more cautious consumer spending are further limiting growth opportunities.
In October, PepsiCo lowered its forecast for core profit growth in 2026, citing continued pressure on margins in North America. The company said it would seek additional savings to offset weak momentum in its food and beverage businesses.
Exact Scope Has Not Yet Been Announced
PepsiCo has not published a detailed list of the affected positions, divisions or employees. No specific terms for compensation or notification periods for individual workers have been announced either. It has been confirmed that the changes will affect the company’s operations in North America and will be presented in stages next week.
As of December 27, 2025, PepsiCo had around 306,000 employees worldwide, including approximately 125,000 in the United States. The planned cuts represent a small portion of the global workforce, but are the latest element of the company’s measures to reduce costs and reshape its North American business.
Sources: news.bloomberglaw.com, investing.com, marketscreener.com